@peachette19 @Opus 17
Now for an intriguing follow-up question. Once I came to grips with NOT being able to exclude FSA income on my son's return, thereby adding that money back to taxable income, the next question is whether you need to identify those parties to which you paid dependent care (Part 1 of the form). Originally, I had filled out that section, assuming those costs would be excluded. When TT would not allow this and I finally accepted this, I then started over and noticed TT left Part 1 blank. When I tried to add the names of dependent care providers, it looked like TT did not like this. In any event, I left Part 1 blank and TT let this sail through the Error Check. So that's how I submitted the form electronically with the tax return - Part 1 blank, and Part 3 showing a portion being taxable and a portion carried over into 2021 (and presumably ultimately taxable in 2021).
So my question is whether that is correct to leave Part 1 blank and NOT name child care providers. My instinct says that should be correct because you are not excluding the FSA money, so you have paid tax on it and, therefore, do not need to show the money trail for those FSA funds. Do you agree?
All and all, what a phenomenal waste of time trying to take advantage of a fictitious minor tax break. This "non-deduction" probably cost in time spent substantially more than the potential tax savings
